Issue - meetings

To consider the report of the Deputy Chief Executive.

Scrutiny Committee – Economy considered the report at its meeting on 30 May 2013 and its comments will be reported.

(Report circulated)

(Minute 58)

The report of the Deputy Chief Executive was submitted, bringing to Members attention the issue of low wages across Exeter and the potential impact this had on both the local economy and citizens across the City.

Scrutiny Committee - Economy considered the report at its meeting on 30 May 2013 and the comments of members were noted including the setting up of a Task and Finish Group to look at ways to address the low wage economy.

During discussion Members raised the following points:-

• the reason many people move to Exeter is because it’s a pleasant area of the country to live and not because of the wages
• whilst not everyone working in the city were on a low wage; there are a lot of residents who do not earn enough to purchase their own property
• there was a balance to be found between low wages, taxation and the complicated benefits system
• concern that wages were lower in Exeter than other parts of the South West
• there was the impact of the rising cost of living to consider
• the need to attract new businesses to Exeter and how wages costs impact on this.

The Portfolio Holder Economy and Culture put forward a proposal to establish a Forum, to be chaired by the Portfolio Holder for Economy and Culture and with members from Scrutiny Committee - Economy, to consider the impact of low wages and high cost of living on Exeter residents and identify strategies to address these issues. This Forum would invite representatives from the University, Local Businesses and Community Groups to come along to give views and evidence.

This was seconded by Councillor Hannaford.

A Member raised concerns regarding the effectiveness and purpose of a Forum and that there were limitations as to what it could actually achieve.

The majority of Executive Members supported the establishment of a Forum to take forward the impact of low wages and high cost of living on Exeter residents.

Executive resolved that:-

(1)        the contents of this report and the potential impact on citizens and the wider economy be noted; and

(2)        a Forum be established, to be chaired by the Portfolio Holder for Economy and Culture and with members from Scrutiny Committee - Economy, to consider the impact of low wages and high cost of living on Exeter residents and identify strategies to address these issues.

The report of the Deputy Chief Executive was submitted, bringing to Members attention the issue of low wages across Exeter and the potential impact this had on both the local economy and citizens across the City.

Scrutiny Committee - Economy considered the report at its meeting on 30 May 2013 and the comments of members were noted including the setting up of a Task and Finish Group to look at ways to address the low wage economy.

During discussion Members raised the following points:-

• the reason many people move to Exeter is because it’s a pleasant area of the country to live and not because of the wages
• whilst not everyone working in the city were on a low wage; there are a lot of residents who do not earn enough to purchase their own property
• there was a balance to be found between low wages, taxation and the complicated benefits system
• concern that wages were lower for residents of Exeter than other parts of the South West
• there was the impact of the rising cost of living to consider
• the need to attract new businesses to Exeter and how wages costs impact on this.

The Portfolio Holder Economy and Culture put forward a proposal to establish a Forum, to be chaired by the Portfolio Holder for Economy and Culture and with members from Scrutiny Committee - Economy, to consider the impact of low wages and high cost of living on Exeter residents and identify strategies to address these issues. This Forum would invite representatives from the University, Local Businesses and Community Groups to come along to give views and evidence.

This was seconded by Councillor Hannaford.

A Member raised concerns regarding the effectiveness and purpose of a Forum and that there were limitations as to what it could actually achieve.

The majority of Executive Members supported the establishment of a Forum to take forward the impact of low wages and high cost of living on Exeter residents.

RESOLVED that:-

(1)        the contents of this report and the potential impact on citizens and the wider economy be noted; and

(2)        a Forum be established, to be chaired by the Portfolio Holder for Economy and Culture and with members from Scrutiny Committee - Economy, to consider the impact of low wages and high cost of living on Exeter residents and identify strategies to address these issues.

 (Report circulated)

To consider the report of the Strategic Director (MP) – report circulated

The Tourism and Economy Manager presented the report, raising Members’ attention to the potential impact of low average wages on both the local economy and citizens across Exeter. The report provided comparative data with which to gauge Exeter’s current position and the degree of deviation that exists from national and other South West authority levels.

A Member sought some further information on the apparent discrepancy between the local and national analysis of full and part-time employees. The Economy and Tourism Manager acknowledged that the hourly rate had not increased at the rate of some other areas.  Devon had many small employers and the retail, tourism and hospitality industries had all suffered in the current economic downturn.  The report acknowledged that Exeter had failed to keep up with wage rates both nationally or regionally, but that every effort would be made to try and encourage higher wage levels.

A Member considered that an appropriate wage was important, and would be part of a virtuous circle to help stimulate the local economy.  It could even reduce the reliance on social payments or boost efforts to reduce youth unemployment.  He suggested that a forum of interested groups around Exeter could be a useful way forward.   A Member suggested a strategy to ensure a living wage was offered for all employment. The Strategic Director (KH) considered that many Exeter businesses do pay well, with wage levels measured by work place higher than wage levels by place of residence, but a range of job opportunities should be encouraged to retain skilled and well trained employees and stem the flow of graduates leaving for employment opportunities in other areas. Members suggested setting up a task and finish group with a wide economic remit but also to improve the low wage economy and reduce youth unemployment.

Scrutiny Committee – Economy noted the contents of the report and the potential impact on citizens and the wider economy, and agreed to set up a Task and Finish Group to look at ways to address the low wage economy. 

(Report circulated)